The Hong Kong Mercantile Exchange (HKMEx) announces today it has decided to voluntarily surrender the authorisation to provide automated trading
services (“ATS”) granted by the Securities and Futures Commission (“the SFC”). With immediate effect, no new orders may be placed and all open
positions will be financially settled at the settlement price determined by HKMEx and its designated clearinghouse.

The voluntary surrender decision was made to enable the Exchange to re-align its strategy with the new industry environment since its trading revenues
have not been sufficient to support operating expenses and, as a result, its inability to meet the required regulatory financial conditions.

While trading on the Exchange will discontinue, HKMEx as an organisation will continue to operate with its existing staff, and will focus on
developing new products including renminbi-denominated precious and base metals contracts that will better meet customer needs.

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Then I guess it is a good thing that American Currency is No longer backed by Gold or Silver.

If you have purchased Gold at the $1800+ dollar an ounce price you might want to sell before it goes back to $300-$400 an once.

Gold will never drop below 1,000 an ounce in your lifetime. If a cache was found, or a giant vein was found or a new mine discovered it could
theoretically drop it a bit but I think it's pretty clear 1,000 is the safe number it will rest on. Due to high demand it'll still trade higher than
that.

I was waiting for more people to comment before I put in my two cents...but in essence ....what the article is stating is the you won't be able to
trade Gold on HKME...that any open puts will be paid in a value (devaluation) that they decide it is worth. It further goes on to say that they will
be exploring different other precious metals/commidities for investors.

Actually, if this is what I think it is, as it is well documented that China has been buying up a lot of Gold...if they wanted to tank the
market...thereby buying an even larger shares of the Gold Market at a lower price...this would be a very good way to do it.

The recent article or two about the future prospects of mining incredible amounts of gold from the ocean floor is perhaps giving us glimpses of some
changes in the area of gold production which may drastically alter the current situation. Regardless of how your economy is based, more product =
lower prices unless you can whip up the demand. And that is the name of the game.

Sorry I thought I had replied to you am watching the action w/the line of tornadoes in OK...already one F1, a strong F2 currently that may go to
F3...and another supercell fight behind it...will post on another thread....

I am thinking that this is going drop into the 800...everyone has been talking about a correction even after the 500 drop...I guess we will see.

Originally posted by maddog3n8
I am thinking that this is going drop into the 800...everyone has been talking about a correction even after the 500 drop...I guess we will see.

Preparation for confiscation, perhaps?

International Dutch bank (ABN AMRO, owned by the Dutch government) confiscated all its customers’ gold bullion being held in safe custody. The
bank did agree to pay for the bullion, though at artificially low prices.

The operative word being *pay*. Confiscating gold at artificially low prices by agreeing to buy it now with fiat bucks is a scam of last resort.

This is very significant and I'm at a loss as to why there is not more outcry about this on the forum, unlike most topics this has the potential to
very negatively impact anyone who holds any financial asset that is not a hard asset they hold in their custody (physical gold, silver, land, ammo,
food, seeds, etc).

If you have all your survival stuff squared away you should be buying physical precious metals with both hands.

I couldn't agree more.

Check out this article. This is going to get interesting.

On Thursday Reuters reported again on the tight supply conditions out of Asia. The story in the press has been reported as “high premiums for
physical” but in reality the following quote is more descriptive. "Honestly, we don’t have enough physical gold to supply to the Chinese" said a
dealer in Singapore. "This is mad.”

(There has been a) complete stoppage of delivery to the Shanghai Gold Exchange (SGE). Night after night there have been no deliveries made. The gold
is “somewhere else.”

In prior inventories-on-fumes episodes, there was a lot more producer hedging in place and thus there was steady delivery of a real product — actual
physical gold. Today, we have a completely different setup: There’s little producer hedging. In February 2010 there were about 140,000 contracts
hedged by producers. In July 2011, there were 200,000 or 20 million ounces. Hedged gold translates into delivered gold to the Comex warehouse.

Today, there are only 27,066 (2.7 million ounces) hedged, and this is spread out for delivery over months and even years. CoT data indicates that
in the week ending Tuesday, May 14, producers closed out a whopping 1.04 million ounces of hedges.

This may also suggest that gold producers prefer to sell their gold elsewhere and bypass the Comex altogether as a legitimate place to conduct
business. I truly believe that the poorly regulated Comex is suffering reputational risk and is a hallow, corrupt example of the original purpose
of a commodity exchange. Since there no price discovery on the Comex, it wouldn’t surprise me if virtually all producer deliveries disappeared
simply because there are better prices to be had in the physical gold market.

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